Giving Compass' Take:

· Sydney Johnson discusses the rise of income-share agreements at colleges and explains how five different schools have implemented this tuition-financing option for students. 

· How can income-share agreements be formulated to support students and increase access to higher education? 

· Read about the myths around income-share agreements. 

As the cost of college continues to feel out of reach for many students, schools and startups are beginning to think of new ways to finance the cost of tuition. Income-share agreements, or ISAs, are one method winning the attention of investors and education providers alike.

Here’s the idea: rather than paying tuition up front, students pay back a portion of their income after graduating and landing a job. And if students don’t land a job, they pay back nothing. Coding bootcamps have taken to the model by storm, with many relying on ISA arrangements as their most popular tuition-financing option. (And it has helped them avoid dealing with traditional accreditation and financial aid systems while still giving students a way to afford attending.)

But these days, traditional colleges and universities are trying out income-share agreements too, and for different reasons. While coding bootcamps largely rely on ISAs as a method of revenue and growth—high earners potentially pay back more than an upfront tuition if they land a high paying job—some universities are piloting ISAs to a small group of students who have used up their financial aid options, to see if it can help ease remaining costs.

Read the full article about income-share agreements by Sydney Johnson at EdSurge.